NNPC saves a minimum of 3 billion dollars per year on crude oil production

08/23/2017

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The Nigerian National Petroleum Corporation (NNPC) announced that the Federal Government had saved at least 3 billion dollars per year on crude oil production.

On Wednesday in Abuja, Mr. Ndu Ughamadu, Group General Manager and Group Affairs Division of the Nigerian National Petroleum Corporation (NNPC) made a statement that disclosed the reduction of crude oil price. Accordingly, the recent cost is 23 dollars per barrel, decreasing 55 dollars per barrel, compared to 78 dollars in August 2015.

At the opening of the Anti-Corruption Committee of the National Petroleum Investment Management Services (NAPIMS), a branch of NNPC, Mr. Dafe Sejebor, the Group General Manager, also added that this presented a decrease of 70.5% in the cost of crude oil production.

He said that the big difference between the previous and present price of crude oil also affected daily average production in Nigeria. Appropriately, NAPIMS have saved at least 3 billion dollars per year on crude oil production for the Joint Ventures (JVs) and Production Sharing Contracts (PSCs).

a petroleum factory in Nigeria

The big difference between the previous and present price of crude oil also affected to daily average production in Nigeria

He also noted that the goal was to lead cost of onshore and offshore production to between $17 and $19 correspondingly.

The Manager complimented the Federal Government for supporting the management of NNPC in addressing challenges in the petroleum industry, particularly the agreement for the cash call exit signed in 2016 and the cutback of the contracting round from 3 years down to 6 months.

Sejebor also revealed that the new petroleum policy was demanded by the growing difficulties in running the oil industry within the framework of the old Oil Act as the Oil Industry Code (PIB) delayed.

According to him, the policy would recover belief of investors in the industry until the National Assembly passed the full PIB.

For the NAPIMS Anti-Corruption Committee, he called for constructive ideas from staffs to overcome the difficulties in the industry and return its lucks. He also encouraged them to respect the management of the NNPC in intolerance to corruption.

At the inauguration of the Anti-Corruption Unit at Corporate Headquarters lately, Dr. Maikanti Baru, the Group Managing Director of NNPC, had suggested all the Corporate Service Units (CSUs) and Strategic Business Units (SBUs) to build their own anti-corruption committees.

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